Local supporters rebut criticism of education tax credit programs

Tuesday

Apr 18, 2017 at 7:30 PM

By Mark Guydish, The Times Leader, Wilkes-Barre(TNS)

At a time when the White House administration has verbally embraced school choice, a new report sharply criticized the use of education tax credits — giving businesses a tax reduction for money donated to pay for private school tuition. Local agencies involved in Pennsylvania's education tax credit programs rebutted some of the report's claims.

Issued by the Pennsylvania Budget and Policy Center, "Still no accountability" contends the timing is right for a closer look at education tax credit programs. Democratic Gov. Tom Wolf wants to trim the existing Pennsylvania programs, but the the Republican-controlled legislature wants to expand them

Pennsylvania has two programs, the Educational Improvement Tax Credit (EITC) and the Opportunity Scholarship Tax Credit (OSTC). Combined, the two allow up to $125 million in tax credits annually to companies that contribute to Scholarship Organizations, or SOs, which in turn provide tuition assistance for students attending private schools.

—Schools that receive the money are not required to report student progress, administer state standardized tests, or otherwise offer proof of school quality. "In fact, state legislation prohibits the Department of Community and Economic Development (which oversees the programs) from asking for information on achievement of EITC voucher students.

—The report estimates about 76 percent of funds from the two programs go to religious schools, and that "in Pennsylvania, religious schools do not have to be accredited and have no meaningful curriculum standards." The report also argues that "a significant number (of religious schools) teach creationism as science," which public schools can't do.

—Much of the money goes to "expensive private schools that serve high proportions of affluent children," and that those schools need not provide any information on achievement of students getting the financial aid.

The report includes data from 2014-15 that shows how much money each SO in the state received toward tax credit scholarship funds. In Luzerne County, five agencies received a total of $1.2 million. The Diocese of Scranton, which runs many schools in Luzerne County, got a total of $993,889.

But the diocese data may show an issue with one conclusion in the report: It noted that, in 2016-17, 40 counties in the state lacked any OSTC Scholarship Organization, and 30 had no EITC SO.

The problem: All of the money donated to the Diocese of Scranton is included in data for Lackawanna County, where the diocese is headquartered. But the money goes to schools throughout the 11 county diocese.

In a written response to questions regarding the report, Diocesan Spokesman Bill Genello broke down the way the tuition assistance was spread out in 2014-15: 3 percent in Bradford County, 23.5 percent in Lackawanna County, 48.5 percent in Luzerne County, 23 percent in Lycoming County and 2 percent in Monroe County. That fact is not reflected in the report data.

Genello also noted that, while diocesan schools teach creationism, it is "taught as a theological concept," and that "evolution is taught as a science." The Roman Catholic Church has long held that the theory of evolution does not conflict with church religious teachings.

And Genello noted all 20 diocesan schools are accredited by the Middle States Association, and that, while the diocese does not administer state standardized tests — Pennsylvania System of School Assessment in elementary grades and Keystone exams in high school — "our students are administered nationally normed standardized tests."

Among SOs in Luzerne and Lackawanna counties combined, the diocese gets the largest total business contributions for tuition assistance. The SO getting the largest amount in Luzerne County is Wyoming Seminary, which received $501,450 in education tax credit contributions.

United Way of Wyoming Valley, which does not operate schools, received $279,367. President Bill Jones said United Way initially got into the tax credit program to help more low-income children attend pre-school, and expanded the effort to help students from kindergarten through 12th grade.

United Way tries to provide the equivalent of at least two full scholarships each year to schools "we believe of high quality and good reputation," Jones said: Allied Services dePaul School, Wyoming Seminary, MMI Preparatory School, Wilkes-Barre Academy, Wyoming Valley Montessori School, Rock Solid Academy and Scranton Prep.

Because different schools charge different tuition, some get more than two full scholarships, Jones said. It is up to the school to decide how to use the money, as long as it goes to families that meet state-set income guidelines for the two education tax credit programs, he added.

"They can split it up any way they want it," he said. "We are fully compliant with the state guidelines, and want to meet the spirit of helping kids."

Jones and Genello pointed out that both state programs limit the family income for those receiving tuition assistance through tax credit programs. Genello said all families fill out applications that are "processed by an independent, third party company that conducts financial analysis to determine a family's financial need."